Kraft Foods Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kraft Foods (NASDAQ:KFT) will unveil its latest earnings tomorrow, Thursday, August 2, 2012. Kraft Foods manufactures and markets packaged food products, including snacks, beverages, cheese, and convenient meals.

Kraft Foods Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 67 cents per share, a rise of 8.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 69 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 67 cents during the last month. Analysts are projecting profit to rise by 9.2% versus last year to $2.50.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 57 cents per share against a mean estimate of profit of 56 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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Stock Price Performance: From June 28, 2012 to July 31, 2012, the stock price rose $2.30 (6.15%), from $37.41 to $39.75. The stock price saw one of its best stretches over the last year between October 4, 2011 and October 14, 2011, when shares rose for nine straight days, increasing 7.2% (+$2.37) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 3.9% (-$1.51) over that span.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

A Look Back: In the first quarter, profit rose 1.8% to $813 million (46 cents a share) from $799 million (45 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.1% to $13.09 billion from $12.57 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 22.3% in the third quarter of the last fiscal year and 53.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.3% in the second quarter of the last fiscal year, 11.5% in the third quarter of the last fiscal year and 6.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.92 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company improved this liquidity measure from 0.88 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 9.2% to $17.69 billion while liabilities rose by 4.6% to $19.3 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.2% in revenue from the year-earlier quarter to $14.04 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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